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Proposal for Resolution No 74 /XII

The Convention on Mutual Administrative Assistance in Tax Matter has been adopted in

Strasbourg, on January 25, 1988 (Convention), and revised by the Revision Protocol to the

Convention on Mutual Administrative Assistance in Tax Matter, adopted in

Paris, on May 27, 2010 (Protocol), which came into force on June 1, 2011.

Under the terms of the Protocol, it has become established that any State which becomes a party to the

Convention after the entry into force of that, becomes a party to the Convention in the revised version

by this Protocol, save if it manifests any different intention.

In this sense, the Portuguese Republic intends to become a party to the Convention, as

reviewed by the 2010 Revision Protocol.

The benefits of globalization of the world economy translated into the growing

development of international movements of persons, capital, goods and

services involve also an increase in the possibilities of tax evasion and fraud,

thus requiring a more extensive and intensive cooperation between the tax authorities.

The transnational dimension of commercial and financial operations, in particular those carried out

within the business groups imposes the need for the coordination of efforts between the

states tax authorities in the sense of facilitating a correct determination of the

taxes due in each tax jurisdiction and, at the same time, ensure a protection

against discrimination and double taxation.

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Only a multilateral instrument that will behold all forms of administrative assistance

in tax matters, concerning all manner of taxes, is susceptible to laying the foundations

for effective cooperation in combating the different forms that can rewear the

phenomena of evasion and tax fraud.

The forms of administrative cooperation in tax matters, from the Organisation for the

Cooperation and Economic Development (OECD) and the Council of Europe, the

same time that respect national sovereignties and the rights of taxpayers,

constitute a new framework of cooperation that makes it possible for states to face more

effectively the international phenomena of evasion and tax fraud.

The Convention aims to enable the Parties-member countries of those two organizations and

non-member countries-various modalities of administrative cooperation in the form of:

exchange of information (on request, automatic and spontaneous), concurrent tax controls,

tax checks abroad, assistance for collection and notification of documents,

with a view to the fight against international circumvention phenomena and tax fraud and, in

general, the behaviors of non-compliance with tax duties.

The entry into force of the Convention represents, for Portugal, an enlargement of the number

of countries with which there is the possibility of mutual assistance in tax matters

and, even in relation to the countries with which a convention has already been concluded

bilateral intended to avoid double taxation, determines a significant increment in the

scope of existing cooperation, both in terms of taxes covered and the

forms of proportional administrative assistance.

In the face of the exposed, it is in Portugal's interest to have its full membership of this instrument

multilateral.

With the approval of this Convention two declarations are also approved, in the terms

of which the Portuguese Republic indicates to which taxes apply to this Convention and

what the meaning of the expression "competent authority" for the purposes of it.

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Three reservations are still approved, by means of which the Portuguese Republic, pursuant to the

n Article 30 (1) of the Convention, reserves the right not to provide assistance in what it says

respect for compulsory copayments for social security.

Thus:

Under the terms of the paragraph d ) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following motion for a resolution:

Article 1.

Approval

Approve the Convention on Mutual Administrative Assistance in Tax Matter

(Convention), adopted in Strasbourg, on January 25, 1988, as revised by the

Protocol for Revision to the Convention on Mutual Assistance in Tax Matter, adopted

in Paris on May 27, 2010, the text of which, in the authenticated version in the English language, well

as the respectful translation for Portuguese language, if published in annex.

Article 2.

Reservations

By passing this Convention the Portuguese Republic formulates the following reservations:

a) Under the terms of the paragraph a ) of Article 30 (1) of the Convention, the Republic

Portuguese declares that it reserves the right not to provide any form of

assistance in relation to mandatory social security contributions,

set out in the subparagraph ii ) of the paragraph b ) of Article 2 (1) of the Convention.

b) In the terms of the paragraph b ) of Article 30 (1) of the Convention, the Republic

Portuguese declares that it reserves the right not to provide assistance in matter

of enforcement of tax credits or fines in relation to contributions

mandatory for social security, set out in the sub-paragraph ii ) of the paragraph b ) of the n.

1 of Article 2 of the Convention.

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c) Under the terms of the paragraph d ) of Article 30 (1) of the Convention, the Republic

Portuguese declares that it reserves the right not to provide assistance in matter

of notification of documents in relation to the mandatory contributions to the

social security, set out in the sub-paragraph ii ) of the paragraph b ) of Article 2 (1) of the

Convention.

Article 3.

Declarations

By passing this Convention the Portuguese Republic formulates the following

statements:

a) In accordance with Article 2 of the Convention, the Portuguese Republic declares that

they integrate the Annex A the following taxes to which the Convention applies:

i) Subparagraph i ) of the paragraph a ) of Article 2 (1):

-Tax on the Income From Singular Persons;

-Tax on the Income From Collective Persons;

-State Derrama.

ii) Subparagraph i ) of the paragraph b ) of Article 2 (1):

-Municipal Spill.

iii) Subparagraph The ) iii ) of the paragraph b ) of Article 2 (1):

-Bond tax, in the case of free transmissions of goods.

iv) Subparagraph B ) iii ) of the paragraph b ) of Article 2 (1):

-Municipal Tax on Real Estate;

-Municipal Tax on the Onerous Transmissions of Real Estate.

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v) Subparagraph C ) iii ) of the paragraph b ) of Article 2 (1):

-Value Added Tax.

vi) Subparagraph D ) iii ) of the paragraph b ) of Article 2 (1):

-Excise taxes.

vii) Subparagraph And ) iii ) of the paragraph b ) of Article 2 (1):

-Single Tax of Circulation;

-Tax on Vehicles.

b) In accordance with Article 3 of the Convention, the Portuguese Republic declares that

integrate Annex B, constituting "competent authorities", for the purposes of

Convention, the Minister of Finance, the Director General of the Tax Authority and

Customs or its authorised representatives.

Seen and approved in Council of Ministers of April 10, 2014

The Prime Minister

The Minister of State and Foreign Affairs

The Minister of the Presidency and Parliamentary Affairs